Indian equity markets are currently trading in a cautious recovery phase, supported by a notable improvement in global sentiment. Renewed optimism surrounding the progress in restarting U.S.–Iran negotiations has helped ease immediate geopolitical concerns, thereby enhancing overall risk appetite. Brent crude oil prices have moderated and are consolidating in the range of $94–95 per barrel, which is a constructive development for the domestic market.

Global equity markets, particularly in the U.S., have witnessed a strong rebound, driven by easing geopolitical tensions and optimism around corporate earnings. Asian markets are also trading higher, further reinforcing the positive global backdrop. Earlier, sustained FII outflows triggered by elevated oil prices and geopolitical uncertainty had weighed on Indian equities. However, recent sessions indicate signs of stabilization, with foreign institutional investors turning marginal net buyers, contributing approximately ?666 crore in the previous session.

Overall, market sentiment has shifted towards a positive bias with cautious optimism, primarily supported by softer crude prices and improving global cues. That said, the environment remains highly news-driven. The sustainability of the ongoing recovery will depend on continued de-escalation in geopolitical tensions, stability in crude oil prices, and consistency in FII flows. In the near term, volatility is expected to persist, with markets likely to remain sensitive to any fresh geopolitical developments.

Technical View

Nifty 50

Nifty 50 is currently trading in the 24,200–24,300 range, positioned slightly above its 50-day EMA, indicating improving short-term strength. The index has encountered resistance near the 24,250–24,300 zone, where selling pressure has limited further upside. The 24,350–24,400 zone now acts as a resistance band, as previous support has turned into resistance. Despite this, the broader structure reflects a gradual recovery from recent lows, supported by improving sentiment. From a technical perspective, a decisive breakout above the 24,300–24,400 range will be crucial to extend the rally towards the 24,800–25,000 levels.

On the downside, immediate support is placed near the 24,000 mark, followed by a stronger base in the 23,900–23,800 zone, which is expected to act as a key demand area. Overall, the outlook remains cautiously positive, with ongoing consolidation indicating underlying strength. However, confirmation of further upside will depend on a sustained breakout above key resistance levels.

Bank Nifty

Bank Nifty is currently trading around the 56,300 level, and from a technical standpoint, the index is positioned between its 50-day and 200-day EMAs, indicating a critical transitional phase. This positioning suggests a neutral-to-cautious undertone, with the medium-term trend attempting to stabilize but still lacking strong confirmation of a sustained uptrend. Despite this, the broader structure reflects a gradual recovery from recent lows, supported by improving sentiment and participation within the banking space. On the upside, a decisive breakout above the 56,800–57,000 range will be essential to extend the rally towards the 57,500–58,000 levels.

On the downside, immediate support is placed in the 55,800–55,500 zone, followed by a stronger base around the 55,000–54,800 region, which is expected to act as a key demand area. Overall, the outlook remains cautiously constructive, with a sustained move above the 200-day EMA being crucial to confirm a stronger bullish trend and continuation of the recovery momentum.